The Johannesburg Stock Exchange (JSE) has announced the listing of the CoreShares Income Actively Managed Exchange Traded Fund, the first Actively Managed Exchange Traded Fund (AMETF) by 10X Investments. Following consultation with market players, the JSE Listings Requirements were amended in October 2022.
An AMETF is a market-listed and traded Collective Investment Scheme (CIS). The new laws demand that the AMETF’s underlying assets or securities meet the FSCA’s requirements and be deemed “sufficiently liquid for robust pricing.” As a result, investment managers will be able to market ETFs with active investment strategies rather than just monitoring a benchmark.
The CoreShares Income AMETF seeks to provide a high level of income as well as long-term stability on capital invested by investing in a variety of asset classes such as bonds, money markets, debt, and credit.
“The CoreShares Income AMETF will strategically invest in a diversified portfolio of income opportunities, including offshore investment-grade and high-yield debt indices, local credit, government bonds (both nominal and inflation linked), as well as cash,” says Anton Eser, Chief Investment Officer at 10X. “We are confident in our ability to provide investors with a high yield and a consistent income stream, with a return profile similar to bonds but significantly lower risk due to diversification and sound risk management frameworks.”
Previously, the only ETFs that could be traded in the United States were those that passively tracked underlying indices or actual commodities. Nonetheless, actively managed ETFs have witnessed significant growth globally. According to etfGI, the actively managed ETF industry’s assets under management climbed by 7.2% to $522 billion at the end of February 2023, up from $487 billion at the end of 2022.
“We are delighted to welcome CoreShares Income Actively Managed ETF.” New funds like this will allow South African investors to diversify their portfolios more affordably and are an indicator of the JSE’s commitment to remain at the forefront of product innovation,” says Valdene Reddy, Director of Capital Markets at the JSE.
Coreshares by 10X is an investment management firm that specializes in producing creative solutions for South African investors. The firm is dedicated to provide clients with access to distinctive and differentiated strategies via the power of ETFs.